Turning Point for Markets?

Markets slipped 1.8% last week but overall September saw shares rise 3.6%, indicating that investors do not believe the market has overheated despite the rapid gains made since March. 

After a packed schedule last week, the five days ahead look relatively light. Indeed, on Tuesday and Wednesday the focus will be on headlines from meeting held at the House Financial Services Committee. 

With markets continuing to digest the worse-than-expected employment data from Friday, some are saying this week could be a turning point for markets.

“The ballyhooed ‘V’-shaped economic recovery may conclude with a lower case ‘v’; in other words a strong, short snapback in economic growth from 2Q to 3Q,” said Brian Sozzi, research analyst for Wall Street Strategies. “Following 3Q, the probability for a further extension in the recovery ‘V’ is up in the air as global demand for durable goods, for example, remains sluggish. China alone cannot dig the rest of the world from below trend growth, and the market may now be reassessing the risk equation of equities.”

Highlights from the Weekend:

Treasury Secretary Tim Geithner said global financial conditions have “improved dramatically” but high unemployment would continue to hurt the world’s financial system. He told an audience in Turkey that it remains too early for nations to withdraw stimulative policies.

The IMF’s Dominique Strauss-Kahn said he wants the Fund to become a global central bank holding reserves of $10 trillion, which could be used for lending to developing nations. According to the Wall Street Journal, the IMS “is essentially being turned into the staff of the Group of 20.”

The Irish people overwhelmingly voted yes to ratify the EU’s Lisbon Treaty, which aims to enhance “the efficiency and democratic legitimacy of the Union and to [improve] the coherence of its action.”

Former Federal Reserve chairman Alan Greenspan said he is opposed to additional stimulus measures for the American economy. He told ABC’s “This Week with George Stephanopoulous he fears that as people remain unemployed, they may lose their skills and, which would be an “irretrievable loss” for the economy.

HSBC released a report entitled “The Tipping Point – The Rise of the East and Demise of the West.” In it, the Hong Kong bank said emerging nations in Asia will dominate the global economy, as low interest rates will create excess global liquidity to be poured into developing markets.

Key Releases This Week:

Monday:

10:00 â€